Compass (CPG) AI Stock Analysis

• Market Cap: £44.26B
• Dividend Yield: 1.85%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.47
• Revenue Growth: 7.67%
• EPS Growth: -15.09%
• Country: UK
• Employees: 580,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 0.48
• Shares Outstanding: 1,697,430,200
• 10 Day Avg. Volume: 2,534,828
• 30 Day Avg. Volume: 2,680,854
• PEG Ratio: 0.12
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,766.88
• Price Target Upside: 5.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: 2,960.00p ▲(13.15%Upside)

Compass Group's overall stock score reflects strong financial performance and positive corporate events as significant strengths, bolstered by strategic investments and market dynamics. However, a high P/E ratio indicates potential overvaluation risks, and technical indicators suggest cautious momentum.

Positive Factors

Contract Wins

Strong contract win momentum is seen with the company winning over double its historical pace of net contract wins in USD terms.

Market Positioning

The company is effectively positioned to benefit from pressures caused by the US election and UK Budget, which are expected to accelerate outsourcing.

Negative Factors

Interest Costs

Higher interest costs are 20% more than prior estimates, reflecting higher than expected M&A spend and the impact of debt refinancing.

M&A Impact

M&A/disposals to move to a headwind in H2.

Share Buyback

The lack of share buyback has been noted as a negative factor affecting the stock sentiment.

Compass Business Overview & Revenue Model

Company Description

Compass, Inc. (CPG) is a leading technology-driven real estate company that provides an innovative platform for buying, selling, and renting properties. The company integrates advanced technology with professional services to empower real estate agents and improve the home buying and selling experience for clients. Operating primarily within the residential real estate sector, Compass offers a suite of digital tools and services that streamline transactions, enhance property marketing, and provide data-driven insights.

How the Company Makes Money

Compass makes money primarily through real estate transaction commissions. The company partners with real estate agents who use its platform to facilitate property sales and rentals. Agents pay Compass a percentage of the commission they earn from each transaction. Additionally, Compass generates revenue by offering various ancillary services, such as marketing and advertising support, to real estate professionals. The company's business model is heavily reliant on its ability to attract and retain top-performing agents and to expand its market presence through strategic acquisitions and partnerships with local brokerages.

Compass Financial Statement Overview

Summary

Compass exhibits strong financial health with impressive revenue and profit growth, solid cash flow management, and a stable balance sheet. However, maintaining control over debt levels and enhancing equity proportion could further strengthen its financial position.

Income Statement

Compass has shown impressive revenue growth from 2023 to 2024, with a 35.36% increase. The company maintains a healthy gross profit margin of 33.15% and a solid net profit margin of 3.34%. The EBIT and EBITDA margins of 6.05% and 8.12%, respectively, indicate strong operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

Compass's balance sheet is stable with a debt-to-equity ratio of 0.87, indicating manageable leverage. The return on equity is 20.56%, showcasing efficient utilization of equity capital. An equity ratio of 28.05% suggests a balanced capital structure. While the company maintains a healthy position, slight improvements in equity proportion could enhance stability.

Cash Flow

The company demonstrates strong cash flow management, with a significant operating cash flow to net income ratio of 2.23. Free cash flow has grown by 22.18% from 2023 to 2024, supporting the company's operational and growth activities. The free cash flow to net income ratio of 1.59 further emphasizes positive cash flow generation relative to earnings.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
42.00B	31.03B	25.51B	17.91B	19.94B
	Gross Profit
13.93B	1.95B	1.48B	962.00M	3.76B
	EBIT
2.54B	2.25B	1.45B	990.00M	570.00M
	EBITDA
3.41B	2.74B	2.35B	1.28B	915.00M
	Net Income Common Stockholders
1.40B	1.31B	1.24B	357.00M	133.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
623.00M	1.03B	1.99B	1.84B	1.48B
	Total Assets
24.35B	21.48B	18.75B	14.87B	14.73B
	Total Debt
5.91B	5.27B	4.88B	4.48B	4.72B
	Net Debt
5.29B	4.24B	2.89B	2.64B	3.24B
	Total Liabilities
17.44B	15.18B	12.84B	9.95B	9.92B
	Stockholders Equity
6.83B	6.26B	5.87B	4.89B	4.79B
Cash Flow		Free Cash Flow
2.23B	1.83B	1.31B	943.00M	205.00M
	Operating Cash Flow
3.13B	2.17B	1.60B	1.17B	914.00M
	Investing Cash Flow
-1.49B	-1.23B	-874.00M	-727.00M	-1.10B
	Financing Cash Flow
-1.94B	-2.09B	-693.00M	-152.00M	1.28B

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2616.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Positive. The current price of 2616 is below the 20-day moving average (MA) of 2625.85, above the 50-day MA of 2568.74, and above the 200-day MA of 2581.88, indicating a neutral trend. The MACD of 3.92 indicates Positive momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CPG.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.69B	10.08	6.90%	―	1.95%	275.56%
CPG	77 Outperform	£44.26B	38.59	21.77%	1.85%	7.67%	-15.09%
SSPG	74 Outperform	£1.33B	48.66	12.09%	3.35%	14.07%	236.27%
JDW	73 Outperform	£790.17M	13.96	16.38%	0.55%	3.70%	57.10%
MARS	67 Neutral	£265.71M	5.97	10.69%	―	0.50%	―
DOM	66 Neutral	£1.02B	11.33		5.78%	-2.25%	-18.24%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

Compass Corporate Events

Compass Group PLC Announces Total Voting Rights and Capital Structure

Compass Group PLC has announced its total voting rights and capital structure as of May 31, 2025. The company has 1,785,403,977 ordinary shares, with 1,697,430,179 shares admitted to trading and 87,973,798 held in treasury. The announcement highlights the company’s compliance with the FCA’s Disclosure Guidance and Transparency Rules, and the total voting rights figure is crucial for shareholders to determine their interest in the company. This update is significant for stakeholders as it provides clarity on the company’s share capital and voting rights, potentially impacting shareholder decisions and market perceptions.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Reports Strong Half-Year Results with Double-Digit Profit Growth

Compass Group PLC announced its half-year results for 2025, highlighting a strong performance with an 8.8% increase in revenue to $22.6 billion and an 11.6% rise in underlying operating profit. The company achieved double-digit profit growth driven by strong organic revenue and margin progression, supported by a robust client retention rate of over 96% and a significant pipeline of new business. The company continues to invest in growth through capital expenditure and mergers and acquisitions, while reshaping its portfolio by exiting non-core markets. With its resilient business model and sectorised approach, Compass is well-positioned to benefit from increasing outsourcing trends and expects continued profit growth ahead of revenue growth.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Board Appointment at Vodafone

Compass Group PLC has announced that Anne-Françoise Nesmes will join the Board of Vodafone Group Plc as a Non-executive Director. This appointment, which includes roles on the Audit and Risk Committee and ESG Committee, is subject to shareholder approval at Vodafone’s 2025 Annual General Meeting, indicating a strategic alignment and potential influence on governance and sustainability practices.

Compass Group PLC Announces Total Voting Rights and Capital

Compass Group PLC, a leading provider in the foodservice and support services industry, has announced its total voting rights and capital as of March 31, 2025. The company has issued 1,785,403,977 ordinary shares, with 1,697,430,179 shares admitted to trading and 87,973,798 shares held in treasury. The voting rights for the traded shares amount to 1,697,430,179, while the rights for treasury shares are suspended. This information is crucial for shareholders to determine their interests under the FCA’s Disclosure Guidance and Transparency Rules.

Compass Group CFO Pledges Shares for Loan Facility

Compass Group PLC announced a transaction involving Petros Parras, the Group CFO and Executive Director, who pledged 26,929 ordinary shares in favor of Société Generale as part of a loan facility for purchasing a residential property. This transaction, conducted outside a trading venue, highlights the personal financial activities of a key executive, potentially impacting stakeholder perceptions of executive confidence and financial management within the company.